SKF First-quarter report 2013

2013 April 17, 08:00
CEST

Tom Johnstone, President and CEO:
“SKF delivered a good solid performance in the quarter despite sales being lower than expected and significantly lower than the record sales in the first quarter last year. The steps which we are taking to adjust our cost base are giving results as can be seen by the positive sequential margin development.
There is continued uncertainty and cautiousness in the market place and this impacted our sales more than expected especially in our industrial businesses and in North America.
The acquisition of Blohm + Voss Industries was completed in the first quarter and will strengthen our position in the marine industry. In April at the Hannover Fair we launched a number of new solutions such as SKF Insight™, the new wireless and self powered monitoring sensor and solution, which will enable us to even better help our customers improve performance, reduce downtime and cost.
Going forward, it is not easy to give a demand outlook due to all the mixed signals in the economy. However, while demand in the second quarter is expected to be unchanged sequentially and lower year on year I feel that as we go through the quarter we will start to see a slowly improving business.”

Q1 2013

Q1 2012

Key figures

Net sales, SEKm

15,152

16,931

Operating profit, SEKm

1,480

2,136

Operating margin, %

9.8

12.6

Operating margin excluding one-off costs, %

11.4

12.6

Profit before taxes, SEKm

1,237

1,956

Net profit, SEKm

818

1,326

Basic earnings per share, SEK

1.74

2.81

The operating profit was affected by one-off costs of around SEK 250 million.

Net sales change y-o-y,in SEK, attributable to:

Volume

Price/

mix

Structure

Currency

effect

Total

Q1 2013

-8.7%

0.7%

1.5%

-4.0%

-10.5%

Sales in the first quarter in local currencies and excluding structure decreased by 10% both in Europe and North America, by 7% in Asia and by 6% in Middle East and Africa. In Latin America they increased by 8%.
Manufacturing in the first quarter was lower year over year.

Outlook for the second quarter of 2013

Demand compared to the second quarter 2012
The demand for SKF’s products and services is expected to be lower for the Group and for Europe. It is expected to be relatively unchanged for Asia and North America and slightly higher for Latin America. The demand is expected to be lower for Industrial Market, Strategic Industries and Industrial Market, Regional Sales and Service and slightly lower for SKF Automotive.
Demand compared to the first quarter 2013
The demand for SKF’s products and services is expected to be relatively unchanged for the Group, for Europe, Asia and North America. It is expected to be slightly higher for Latin America. The demand is expected to be relatively unchanged for the business areas.

Manufacturing
Manufacturing is expected to be lower year over year and relatively unchanged compared to the first quarter.

Gothenburg, 17 April 2013

Aktiebolaget SKF
(publ)

AB SKF is required to disclose the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at around 08.00 on 17 April 2013.

SKF is a leading global supplier of bearings, seals, mechatronics, lubrication systems, and services which include technical support, maintenance and reliability services, engineering consulting and training. SKF is represented in more than 130 countries and has around 15,000 distributor locations worldwide. Annual sales in 2012 were SEK 64,575 million and the number of employees was 46,775. www.skf.com

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